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Bait-and-switch

Bait-and-switch is a form of fraud used in retail sales but also employed in other contexts. First, customers are "baited" by merchants' advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods are not available, or the customers are pressured by salespeople to consider similar, but higher-priced items ("switching").

Bait-and-switch techniques have a long and widespread history as a part of commercial culture. Many variations on the bait-and-switch appear, for example, in China's earliest book of stories about fraud, Zhang Yingyu's The Book of Swindles (c. 1617).[1]

Function

The intention of the bait-and-switch is to encourage purchases of substituted goods, making consumers satisfied with the available stock offered, as an alternative to a disappointment or inconvenience of acquiring no goods (or bait) at all, and reckoning on a seemingly partial recovery of sunk costs expended trying to obtain the bait. It suggests that the seller will not show the original product or service advertised but instead will demonstrate a more expensive product or a similarly priced but lower quality product. In either case, the seller expects to earn a higher margin on the substitute product.

Legality

In the United States, courts have held that the purveyor using a bait-and-switch operation may be subject to a lawsuit by customers for false advertising, and can be sued for trademark infringement by competing manufacturers, retailers, and others who profit from the sale of the product used as bait. However, no cause of action will exist if the purveyor is capable of actually selling the goods advertised, but aggressively pushes a competing product.

Likewise, advertising a sale while intending to stock a limited amount of, and thereby sell out, a loss-leading item advertised is legal in the United States.[2] The purveyor can escape liability if they make clear in their advertisements that quantities of items for which a sale is offered are limited, or by offering a rain check on sold-out items.

In England and Wales, bait and switch is banned under the Consumer Protection from Unfair Trading Regulations 2008;[3] breaking this law can result in a criminal prosecution, an unlimited fine and two years in jail. In Canada, this tactic is illegal under the Competition Act. In Australia, bait advertising is illegal under the Competition and Consumer Act 2010[4] (formerly known as the Trade Practices Act 1974).

Non-retail use

  • A bait-and-switch interview is when a potential employee hires another person to be their stand-in during the job interview process.[5]
  • Online sellers use bait-and-switch by showing a photograph of a desired item to get sales, then shipping a cheaper copy of the item or a picture of the item.[6]
  • Car dealerships and auto brokers have also been known to use various forms of bait-and-switch or similar tactics, such as advertising vehicles online at what seems like a bargain price, only for the customer to discover that the specific vehicle is no longer available, as well as adding on a plethora of additional fees or even changing the sale price when coming close to closing the sale.[7][8]

Politics

In lawmaking, "caption bills" that propose minor changes in law with simplistic titles (the bait) are introduced to the legislature with the ultimate objective of substantially changing the wording (the switch) at a later date in order to try to smooth the passage of a controversial or major amendment. Rule changes are also proposed (the bait) to meet legal requirements for public notice and mandated public hearings, then different rules are proposed at a final meeting (the switch), thus bypassing the objective of public notice and public discussion on the actual rules voted upon.[9]

See also

References

  1. ^ Zhang Yingyu (2017). The Book of Swindles: Selections from a Late Ming Collection. Translated by Rea, Christopher; Rusk, Bruce. Columbia University Press. ISBN 978-0-23117-862-4.
  2. ^ Dwivedi, Yogesh K.; Ismagilova, Elvira; Hughes, D. Laurie; Carlson, Jamie; Filieri, Raffaele; Jacobson, Jenna; Jain, Varsha; Karjaluoto, Heikki; Kefi, Hajer; Krishen, Anjala S.; Kumar, Vikram; Rahman, Mohammad M.; Raman, Ramakrishnan; Rauschnabel, Philipp A.; Rowley, Jennifer (2021-08-01). "Setting the future of digital and social media marketing research: Perspectives and research propositions". International Journal of Information Management. 59: 102168. doi:10.1016/j.ijinfomgt.2020.102168. ISSN 0268-4012.
  3. ^ "The Consumer Protection from Unfair Trading Regulations 2008". Legislation.gov.uk. Retrieved 19 July 2019. (See paragraphs 5 and 6)
  4. ^ "Consumer Law Australia - How is Bait Advertising Illegal?". Brucelegal.com.au. 6 August 2018. Retrieved 11 June 2019.
  5. ^ Robin Madell (30 Nov 2022). "What Is a Bait and Switch Interview?". US News & World Report.
  6. ^ "A Guy Accidentally Paid $700 for a Photo of an Xbox on eBay". Vice Media. Retrieved 2020-07-28.
  7. ^ "Common Auto Dealer Scams". PublicCounsel.org. Retrieved 19 July 2019.
  8. ^ Reynolds, Jerry (1 March 2018). "Beware Of Bait and Switch Internet Pricing Practices". Car Pro USA. Retrieved 19 July 2019.
  9. ^ "Political Adaptation of Bait and Switch Tactics". fraud.laws.com. 2015-04-04. Retrieved 2020-09-17.

External links

  • . Federal Trade Commission. Archived from the original on 19 March 2013.
  • Cleland, Scott (22 September 2011). "Google's 'Bait & Switch' Deception Exposed at Hearing". Forbes.
  • . Competition Bureau Canada. Archived from the original on 5 August 2014.

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For the album by Thomas Jefferson Slave Apartments see Bait and Switch album For the book by Barbara Ehrenreich see Bait and Switch book This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Bait and switch news newspapers books scholar JSTOR January 2013 Learn how and when to remove this template message Bait and switch is a form of fraud used in retail sales but also employed in other contexts First customers are baited by merchants advertising products or services at a low price but when customers visit the store they discover that the advertised goods are not available or the customers are pressured by salespeople to consider similar but higher priced items switching Bait and switch techniques have a long and widespread history as a part of commercial culture Many variations on the bait and switch appear for example in China s earliest book of stories about fraud Zhang Yingyu s The Book of Swindles c 1617 1 Contents 1 Function 2 Legality 3 Non retail use 4 Politics 5 See also 6 References 7 External linksFunction EditThe intention of the bait and switch is to encourage purchases of substituted goods making consumers satisfied with the available stock offered as an alternative to a disappointment or inconvenience of acquiring no goods or bait at all and reckoning on a seemingly partial recovery of sunk costs expended trying to obtain the bait It suggests that the seller will not show the original product or service advertised but instead will demonstrate a more expensive product or a similarly priced but lower quality product In either case the seller expects to earn a higher margin on the substitute product Legality EditIn the United States courts have held that the purveyor using a bait and switch operation may be subject to a lawsuit by customers for false advertising and can be sued for trademark infringement by competing manufacturers retailers and others who profit from the sale of the product used as bait However no cause of action will exist if the purveyor is capable of actually selling the goods advertised but aggressively pushes a competing product Likewise advertising a sale while intending to stock a limited amount of and thereby sell out a loss leading item advertised is legal in the United States 2 The purveyor can escape liability if they make clear in their advertisements that quantities of items for which a sale is offered are limited or by offering a rain check on sold out items In England and Wales bait and switch is banned under the Consumer Protection from Unfair Trading Regulations 2008 3 breaking this law can result in a criminal prosecution an unlimited fine and two years in jail In Canada this tactic is illegal under the Competition Act In Australia bait advertising is illegal under the Competition and Consumer Act 2010 4 formerly known as the Trade Practices Act 1974 Non retail use EditA bait and switch interview is when a potential employee hires another person to be their stand in during the job interview process 5 Online sellers use bait and switch by showing a photograph of a desired item to get sales then shipping a cheaper copy of the item or a picture of the item 6 Car dealerships and auto brokers have also been known to use various forms of bait and switch or similar tactics such as advertising vehicles online at what seems like a bargain price only for the customer to discover that the specific vehicle is no longer available as well as adding on a plethora of additional fees or even changing the sale price when coming close to closing the sale 7 8 Politics EditIn lawmaking caption bills that propose minor changes in law with simplistic titles the bait are introduced to the legislature with the ultimate objective of substantially changing the wording the switch at a later date in order to try to smooth the passage of a controversial or major amendment Rule changes are also proposed the bait to meet legal requirements for public notice and mandated public hearings then different rules are proposed at a final meeting the switch thus bypassing the objective of public notice and public discussion on the actual rules voted upon 9 See also EditAIDA marketing Choice architecture Clickbait Contract of sale Cross selling Door in the face technique Foot in the door technique Introductory rate Invitation to treat Low ball Marketing Outline of marketing Permission marketing Promotion Pyramid scheme Sales Selling technique Trojan horse business Upselling Value added sellingReferences Edit Zhang Yingyu 2017 The Book of Swindles Selections from a Late Ming Collection Translated by Rea Christopher Rusk Bruce Columbia University Press ISBN 978 0 23117 862 4 Dwivedi Yogesh K Ismagilova Elvira Hughes D Laurie Carlson Jamie Filieri Raffaele Jacobson Jenna Jain Varsha Karjaluoto Heikki Kefi Hajer Krishen Anjala S Kumar Vikram Rahman Mohammad M Raman Ramakrishnan Rauschnabel Philipp A Rowley Jennifer 2021 08 01 Setting the future of digital and social media marketing research Perspectives and research propositions International Journal of Information Management 59 102168 doi 10 1016 j ijinfomgt 2020 102168 ISSN 0268 4012 The Consumer Protection from Unfair Trading Regulations 2008 Legislation gov uk Retrieved 19 July 2019 See paragraphs 5 and 6 Consumer Law Australia How is Bait Advertising Illegal Brucelegal com au 6 August 2018 Retrieved 11 June 2019 Robin Madell 30 Nov 2022 What Is a Bait and Switch Interview US News amp World Report A Guy Accidentally Paid 700 for a Photo of an Xbox on eBay Vice Media Retrieved 2020 07 28 Common Auto Dealer Scams PublicCounsel org Retrieved 19 July 2019 Reynolds Jerry 1 March 2018 Beware Of Bait and Switch Internet Pricing Practices Car Pro USA Retrieved 19 July 2019 Political Adaptation of Bait and Switch Tactics fraud laws com 2015 04 04 Retrieved 2020 09 17 External links Edit Look up bait and switch in Wiktionary the free dictionary Guides Against Bait Advertising Federal Trade Commission Archived from the original on 19 March 2013 Cleland Scott 22 September 2011 Google s Bait amp Switch Deception Exposed at Hearing Forbes Bait and switch selling Competition Bureau Canada Archived from the original on 5 August 2014 Retrieved from https en wikipedia org w index php title Bait and switch amp oldid 1136219348, wikipedia, wiki, book, books, library,

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